While most beef, lamb and dairy prices improved during the coronovirus pandemic, the hide market was hit hard, with the Italian tannery sector all but closing temporarily.

However, data from theSauerReport indicates that the situation has since improved, although the market may now be facing some headwinds.

While hide prices fell the world over during the height of the pandemic, with reports suggesting Chinese buyers took the opportunity to upgrade on quality, albeit at the same or lower prices, values have recovered from last year’s lows, according to a report from AHDB.

However, further increases may be more difficult, despite the lower UK kill restricting domestic supplies. Instead, it claims recent price rises have been supported by Italian buyers apparently replenishing stocks, therefore, it is not clear if further rises are sustainable.

Rising freight prices are also adding to the difficulties of exporting a range of products to China and is particularly challenging where margins have already been particularly narrow, as in the case of hides in recent months.

Reports indicate that US demand for imported leather products has been sluggish, but it is hoped that some pent up demand caused by the pandemic will be unleashed as lockdowns ease further.

Sheep skin prices remain very much in the doldrums, again according to theSauerReport, with abattoirs still being charged between 50p and £1 per skin to have green skins taken away.